Consolidated Statements of Cash Flows For the Years Ended December 31, 2008, 2007 and 2006 Consolidated Statements of Cash Flows For the Years Ended December 31, 2008, 2007 and 2006

Open PDF Version

In thousands of U.S.$ 2008   2007   2006  

Cash flows provided by operating activities :

Net income 98,624   521,107   498,126  
Adjustments to reconcile net income to net cash
Provided by operating activities:
Amortization of net (discount) premium on investments (306 ) 3,731   12,485  
Amortization of other intangibles and depreciation 22,594   17,045   15,809  
Net realized investment losses 57,366   18,302   20,342  
Deferred taxes (35,439 ) 8,727   18,968  
Stock-based compensation expense 17,395   10,837   8,053  
Equity in loss (earnings) of unconsolidated ventures 111,570   (21,286 ) (29,073 )
Premiums receivable, net 114,445   32,828   (85,461 )
Deferred acquisition costs 8,098   (6,263 ) (6,217 )
Prepaid reinsurance premiums (26,997 ) 16,197   (77,926 )
Losses recoverable (370,480 ) (7,632 ) (26,996 )
Accrued investment income 7,671   2,214   (6,958 )
Other assets (9,371 ) (7,105 ) 2,549  
Reserve for losses and loss expenses 343,232   48,122   98,096  
Reserve for unearned premiums 30,403   (33,386 ) 39,573  
Deposit liabilities (50,321 ) (52,081 ) 68,501  
Reinsurance balances payable 71,159   (62,909 ) 93,576  
Other liabilities 89,795   (7,932 ) (13,328 )
Net cash provided by operating activities 479,438   480,516   630,328  

Cash flows PROVIDED BY (used in) investing activities:

Proceeds from sales of fixed maturity investments 3,109,607   3,112,796   1,819,637  
Proceeds from sales of short term investments 33,240      
Proceeds from maturities and calls on fixed maturity investments 753,055   676,498   563,164  
Proceeds from maturities and calls on short term investments 132,446      
Proceeds from redemptions of other investments 15,345   5,126    
Purchases of fixed maturity investments (3,430,195 ) (3,652,611 ) (2,765,056 )
Purchases of short term investments (264,320 ) (12,646 )  
Purchase of other investments (53,050 ) (88,900 ) (62,112 )
Purchases of fixed assets (10,275 ) (17,734 ) (18,294 )
Change in securities lending collateral received 60,101   53,721   181,901  
Net cash paid in acquisitions (24,545 ) (109,813 ) (16,042 )
Net cash provided by (used in) investing activities 321,409   (33,563 ) (296,802 )

Cash flows used in financing activities:

Issuance of common shares 1,588   10,072   9,253  
Repurchase of common shares (155,463 ) (309,503 ) (10,008 )
Change in securities lending collateral (57,438 ) (53,721 ) (181,901 )
Settlement of equity awards (5,065 ) (3,444 ) (3,498 )
Offering and registration costs paid (1,504 ) (715 ) (134 )
Proceeds from bank debt 784      
Bank debt repaid (2,159 )    
Dividends on preferred shares (15,500 ) (15,500 ) (15,500 )
Dividends on common shares (58,708 ) (64,073 ) (66,262 )
Net cash used in financing activities (293,465 ) (436,884 ) (268,050 )
Effect of exchange rate changes on cash and cash equivalents (13,213 ) 9,984   14,281  
Net increase in cash and cash equivalents 494,169   20,053   79,757  
Cash and cash equivalents, beginning of year 567,825   547,772   468,015  
Cash and cash equivalents, end of year 1,061,994   567,825   547,772  

The financial information presented in this report should be reviewed in conjunction with our Annual Report on Form 10-K for the fiscal year ended December 31, 2008 filed with the Securities and Exchange Commission.

Endurance Specialty Holdings Ltd. 2008 Annaual Report